Steel Plate Price Increasing in Tokyo

Market price of steel plate is flat with potential increase in Tokyo at 80,000 yen per tonne for products with 19 millimeters thick, 5 feet width and 10 feet length. The price is 95,000-100,000 yen per tonne for processed plate.Steel plate processing volume has improved at shearing processors for building materials when the order is gradually increasing for bridges since July. Operations were slow at the shearing processors in April-June impacted by the bid rigging problem among Japanese bridge contractors and the seasonal demand decrease for steel frame works.Steel plate shipment is active at the makers when the makers have order backlog for near 4 years for shipbuilding, which represents 40% of total steel plate demand in Japan, and the demand is also strong for construction and industrial machines, which represents 10-20% of total demand.Steel plate supply is expected to tighten sharply in and after autumn due to the demand recovery for construction materials, while the supply and the demand were in balance so far. The market price would increase gradually under the tightening supply.